To be in business, you must offer value to customers. To stay in business, you need to make an adequate profit. The topics in this lesson will help you learn how to:
- Clarify your value proposition—how you propose to create value for your customer
- Outline your business model—how you propose to create value for your business
We find two of the visual frameworks from the Strategyzer Series to be helpful: The Value Proposition Canvas and The Business Model Canvas. In addition, we’ll introduce Marketing Physics, which offers a complementary perspective on defining your value proposition.
The Value Proposition Canvas
The Value Proposition Canvas consists of two side:
- The right side is the Customer Profile. It helps you structure your thinking about a specific customer segment.
- The left side is the Value Map. It helps you describe how you intend to create value for that customer.
The Business Model Canvas
The Business Model Canvas builds on The Value Proposition Canvas. In particular, The Business Model Canvas prompts you to identify the key resources your business will require as well as the activities necessary to build, acquire, or otherwise access such resources. In the next lesson, we’ll explore how to convert these static “snapshots” into dynamic “movies” of your business.